Disadvantages of state-owned insurance companies

The volume of a bucket does not depend on a long board, and the total amount of water stored can never exceed the limit of the short side. Like a dam, the flood always crosses the lowest baffle first. So, where is the short side of the "barrel" of state-owned insurance companies?

(1) Comparison with foreign insurance When foreign insurance companies enter China in succession, state-owned insurance companies have incomparable advantages such as culture, network and existing shares, but it is difficult to connect with internationalization, with low efficiency in multi-level management and lack of innovation in development.

1. Shortboard of internationalization. The first is the gap in competitive level. Foreign insurance companies are big and heavy, and they are approaching crocodiles, while China insurance companies are small and light, and at best they are newborn calves. The second is the gap in technical content. Insurance is the product and accessory of economic development, and the degree of economic development fundamentally determines the depth of insurance development. The highly developed western market economy leads the rapid development of risk management technology, and the insurance support demand contained in China's economic take-off forces us to "learn from its strengths and make up for its shortcomings". The third is the standardization demand of borderless economy. After China's entry into WTO, it needs not only the experience of "civil war" but also the strength to compete with international insurance giants. In the past, we emphasized the characteristics of China. Now and in the future, we should grasp international practices, follow international standards and take the initiative to connect with the international community.

2. Inefficiency is short-lived. As a state-owned insurance company born out of planned economy monopoly, it is set up according to administrative divisions, with institutions all over urban and rural areas and networks covering the whole country. However, the laying of institutions does not necessarily lead to the improvement of service level and business performance. High cost, many links, slow pace and inadequate service have always been the chronic diseases of state-owned insurance companies. Taking the "double generation" of auto insurance and freight insurance as an example, it should be an irreplaceable advantage for state-owned insurance companies that the subject matter of insurance is out of danger in different places and the branch where the subject matter is located surveys and claims on behalf of state-owned insurance companies. However, the procedures are cumbersome, and the phenomenon of shirking between agents and agencies occurs from time to time. From the management level, foreign-funded institutions tend to be simple, lean and flat, while state-owned companies have many levels and distinct levels, feel like wearing boots and hats, are insensitive to the market, and are slow to transmit feedback information to customers.

3. The development of innovation is short-lived. With the trend of opening up, insurance companies in China are more and more exposed to real commercial insurance, and are deeply influenced by the insurance market. People's familiar concepts such as product development, customer relationship, risk management and risk assessment have become the basic way for enterprises to survive. However, due to the incomplete opening up and the initialization of competition, the domestic insurance industry, especially the state-owned insurance companies, is still in a low-level imitation stage in terms of new business philosophy, new underwriting technology, new market operation mode and new management mode, and the R&D innovation ability is obviously insufficient, which has a great lag effect compared with the demand for commercial insurance under the economic development and opening up situation.